Target Group has reported a 40% increase in efficiency and colleague satisfaction in managing arrears cases after deploying its new AI-powered Collections Guru agent.

The outsourcer and software provider said the agent uses agentic AI to gather and interpret complex information and historic case data, with the aim of simplifying arrears management and guiding advisers towards appropriate customer outcomes.

Collections Guru presents advisers with relevant case information in one place, rather than requiring them to move between multiple systems and detailed standard operating procedures. It also provides immediate actions based on those procedures and suggests next steps for advisers to follow.

Target said the system had reduced average handling times across its debt collections and arrears management operation by 30%, cut screen-toggling by 40% and reduced dependency on subject knowledge by 40%.

The company said the tool was intended to reduce subjective decision-making, adviser fatigue and compliance risk, while improving consistency for customers in arrears.

Collections Guru has been developed with Target’s parent company, Tech Mahindra, and follows earlier AI work within the business, including virtual assistants and chatbots for employee HR enquiries.

Target has also used AI and machine learning in its contact centre solution to summarise customer interactions, monitor and score interactions, provide live guidance to agents and flag potential issues or vulnerabilities in real time.

Melanie Spencer (pictured), growth director at Target Group, said: “Rather than talking about it or pecking around the edges, Collections Guru is the latest deployment of AI technology across our business to enhance the human touch and improve our service.

“It is great to see tremendous results already in what is one of the most critical and sensitive parts of our operation and a key area where our lender clients look for support.

“In the current climate, all eyes will continue to be on arrears and collections management, making sure that lenders are responding consistently, providing the right support and delivering good outcomes for clients.

“This latest advancement means we are able to keep human expertise at the centre of this process and utilise data-driven insights to provide instant and accurate support to clients in a consistent, cost-effective and compliant way.”